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United Airlines' profit falls below expectations as travel expenditure drops
United Airlines announced on Wednesday that it would report a lower than expected profit for the quarter ending September, as concerns about rising living expenses and an uncertain economy have caused a reduction in discretionary spending. However, the Chicago-based carrier said that it had seen a significant increase in bookings for business travel in the current quarter compared to a year ago. United anticipates a profit adjusted in the range $2.25 per share to $2.75 for the quarter ending September. According to LSEG, the midpoint of United's forecast is $2.50 a share. This compares with an average analyst estimate of $2.60. The disruptions at Newark Airport are expected to have a negative impact on its earnings for the third quarter. Now, the company's adjusted full-year profit is estimated to be between $9 and $11 per share. Analysts had expected $10.04 per share. After-hours, the company's stock was down by 2.5%. United Airlines took a unique step in April by offering two different forecasts of earnings, as the trade war between President Donald Trump and his business partners has weakened consumer confidence. This makes it difficult for carriers to predict their business. Industry executives claim that travel demand has stabilised since then. Government data show that passenger traffic in the U.S. is still lower than a year earlier, resulting in a decrease in air fares. United stated that demand trends have improved thanks to a reduction in macroeconomic and geopolitical uncertainty. (Reporting and editing by Franklin Paul, Sandra Maler, and Rajesh Kumar Singh)
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Kinder Morgan, a pipeline operator, posts higher profits in the second quarter.
Kinder Morgan reported a 24% increase in its second-quarter profits on Wednesday. This was largely due to higher volumes of gas being transported through the company's pipelines. Kinder Morgan, for example, is betting on an increase in demand for LNG from LNG export installations as well as electricity for AI operations and cryptocurrency mining. In 2024 the United States will be the world's largest LNG exporter. Exports are expected to grow even more as new terminals become operational after President Donald Trump lifted the pause on new permits. Richard Kinder, Executive Chairman, said: "Our company's future is bright, with historic growth in natural gas demand, a favorable federal regulatory environment and federal agencies that are very supportive." Kinder Morgan says that the results of the survey come at a time when the energy sector is bracing for the impact Trump's tariffs will have on the majority of imports. It does not anticipate any significant impact to project economics. The impact of tariffs will be only 1% the existing project costs. In the quarter reported, the company transported approximately 44,585 billion British Thermal Units per day of natgas, compared to 43,123 Btu/d in last year's report. The total volume of fuel delivered, including refined products like jet fuel and diesel, increased to 2,21 million barrels a day in the quarter ending June 30 from 2,17 million bpd a year ago. The total backlog of projects, which accounts for approximately 40% of all natural gas produced in the country, increased by 6%, to $9.3 Billion, from the previous quarter. Houston-based company's quarterly net income was $715 million or 32 cents a share. This compares to $575 million or 26 cents a share compared to a year ago. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shailesh Kuber.
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NDTV reports that an Air India investigation found no problems with the fuel control switches on Boeing Boeing 787s.
Air India completed its inspection of the fuel control switches in Boeing 787 aircraft and found no problems, Indian broadcaster NDTV reported on Wednesday. Boeing and Air India didn't immediately respond to comments. Could not verify the NDTV story immediately. India ordered Monday that its airlines examine the fuel switches of several Boeing aircraft models. South Korea took a similar step on Tuesday. The fuel switch locks are at the center of an investigation into last month's deadly Air India crash, which killed 260 people. India's Directorate General of Civil Aviation said that it had issued an order for investigation of locks on various Boeing models including 787s, 737s and 777s after several Indian airlines and international carriers began their own inspections of the fuel switches. The preliminary report on the crash released last week found that the switches were almost simultaneously switched from the run position to the cutoff position shortly after takeoff. Reports on the deadliest aviation incident in the last decade reveal that the Boeing Dreamliner, bound for London out of the Indian city Ahmedabad, began to lose thrust shortly after takeoff. Reporting by Rishabh JAISWAL in Bengaluru, Editing by Devika SYAMNATH
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US House passes procedural hurdle for cryptocurrency legislation
The Republican-controlled U.S. House of Representatives cleared a key procedural hurdle Wednesday, setting the stage for likely passage of several cryptocurrency bills a day after President Donald Trump intervened to save the initiative. The House can now consider the bills, which the crypto industry has long sought and is expected to pass. The vote came a day after conservative Republicans defeated a similar procedure amid a dispute about how to proceed with bills. After the House's approval of a measure that would create a federal framework to support stablecoins is set to be signed by Trump, it will mark a major victory for crypto. Stablecoins Crypto traders use to transfer funds between tokens. They have grown in popularity over the past few years. Their proponents claim that they can be used to instantly send payments. House Republicans were unable to pass the bills on Tuesday after several conservative Republicans sided with Democrats to stop an earlier procedural voting. But Trump Meeting with the Hold-outs The vote will be held on Wednesday. (Reporting and editing by Cynthia Osterman; reporting by Pete Schroeder)
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US FAA does not plan to replace L3Harris; Verizon contracts Starlink
The Federal Aviation Administration has told Congress that it does not plan to replace the L3Harris telecommunications contracts with Verizon Communications and the Starlink unit from Elon Musk's SpaceX. The FAA has not been informed of any attempt by SpaceX, to take over the (telecommunications contracts). FAA Administrator Bryan Bedford stated in a Tuesday letter to legislators that the FAA has not considered SpaceX as a replacement for those who were awarded these contracts. "FAA will not use Starlink or any satellite service as the only communications technology for safety critical air traffic services." The Congress approved $12.5 billion for the overhaul of air traffic control. This includes billions to upgrade telecommunications technology. Sean Duffy, Transportation Secretary, said on Wednesday that a majority of the funds allocated for telecoms would be used to replace copper wires with fiber. Duffy stated, "That was our mission. Not some sort of competitive advantage for Starlink." Duffy reiterated the fact that U.S. telecommunication companies have agreed not to charge the FAA obsolescence fee of $800,000,000 annually in order to maintain the copper wire system as the agency switches to fiber optics and upgrades its networks. Starlink stated in March that its services could be a partial solution to an old system. Starlink has no intention or effort to "take over" any existing contract. Many Democrats had suggested that the FAA could cancel a $2.4billion contract with Verizon in favor of Starlink. They cited Musk's role, as he was the head of the Department of Government Efficiency, which was responsible for cost-cutting operations. Musk also criticized the FAA's current telecom system. Musk's relationship began to deteriorate with President Donald Trump in late May, over Trump's spending plans. The two are now embroiled in a bitter feud. The FAA is testing a dozen Starlink terminals as part of its Telecommunications Infrastructure Program, which is administered by L3Harris. Bedford, FAA's Bedford, said that the agency had asked L3Harris, a company specializing in evaluating a wide range of technologies and capabilities, such as fiber, satellite and wireless, to improve and modernize telecommunications provided by about 200 companies. This included Starlink.
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The Trump administration requires an additional $19 billion for air traffic control.
Sean Duffy, the U.S. Transportation secretary, called on Congress on Wednesday to provide another $19 billion for overhauling the aging U.S. Air Traffic Control System after lawmakers approved an original $12.5 billion in funding over five years. Duffy told a U.S. House Transportation and Infrastructure Committee that "we are going to require more money from Congress" and called for a funding program backed by aviation groups and airlines. "We are talking about $31.5 billion for the entire project." "We're talking $31.5 billion to do the full project." USDOT has plans to upgrade radar, telecommunications and air traffic control systems. The USDOT also plans to hire more air traffic controllers, and it has introduced new incentives for them to stay. The $12.5 billion approved by Donald Trump for air traffic control in the past month included $2 billion to build the first new en route air traffic center since 1960. The administration is looking to name a firm to oversee this massive project. Trump stated in April that Raytheon and IBM could be the company to receive the contract. The FAA is looking to replace 618 radars, purchase new radios, and install anti-collision technology on tarmac at 200 airports. Duffy wants to increase funding for airport equipment that will prevent near-misses and provide incentives to encourage the hiring and retention air traffic controllers. This occupation is 3,500 people short of its targeted staffing. A National Academies of Sciences study released last month revealed that the FAA has seen its overtime costs for controllers increase by over 300% since 2013. The report revealed that in 2024, the FAA air traffic workforce will have logged 2.2 millions hours of overtime at a cost of $200 million. (Reporting and editing by Matthew Lewis in Washington, David Shepardson from Washington)
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Armenpress reports that the US has informed Armenia that it is prepared to manage a transport corridor with Azerbaijan.
The Armenpress reported that Nikol Pashinyan, Armenia's Prime Minister, said on Wednesday that the U.S. offered to manage an upcoming transport corridor connecting the majority of Azerbaijan with an Azerbaijani enclave through Armenian territory. Baku wants to secure the potential corridor that would run approximately 32 km (20 miles), through Armenia's southern Syunik Province, connecting Azerbaijan's majority to Nakhchivan (an Azerbaijani enclave bordering Baku's Turkish ally). Azerbaijan is concerned that Yerevan may revoke the access to the corridor too easily. When asked at a press conference if Armenia received a specific offer from Washington in relation to the corridor proposal, Pashinyan replied: "Yes, the United States has made proposals," Armenpress reported. The transit link is just one of many obstacles to a deal for peace between Azerbaijan, a neighbour in the South Caucasus who has fought wars with Armenia since the 1980s. In March, the countries announced that they had finalised their a draft peace deal The timetable for signing the agreement is still uncertain. Pashinyan made his comments just days after Tom Barrack, the U.S. Ambassador to Turkey, stated that Washington had proposed taking over the planned Transit Corridor. It's not a joke that they are arguing about 32 kilometers of road. Barrack, according to the State Department's readout, told reporters last Friday in New York that this dispute has been ongoing for over a decade. What happens then is that America says, "Okay, let's take it over." You can share the road if you give us 32 km of road for a 100-year lease. (Reporting and Writing by Lucy Papachristou, Editing by Andrew Osborn.)
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HPE signs agreement with Elliott to add KLA chairman to its board
Hewlett Packard Enterprise agreed to work with activist investor Elliott Investment Management, and appointed a veteran tech executive as a member of its board in an effort to increase shareholder value after its Juniper Networks purchase. Robert Calderoni is the chairman of KLA's chip tools division. He has joined HPE’s board. Calderoni will also lead a newly formed strategy committee under an agreement signed with Elliott, which includes information sharing. Elliott, which owns a stake in HPE of over $1.5 billion, has also the right to nominate an employee to the board. The agreement lasts for at least one year and prevents Elliott from holding proxy contests. Elliott has a history of promoting change at many companies, including Southwest Airlines and Phillips 66. Elliott has continued to push forward with global campaigns this year, despite the market volatility which led many of its peers to settle. In a high-profile proxy battle in May, it won two seats in the oil refiner Phillips 66. In morning trading, HPE shares, which make servers used in data centres for AI workloads were not much changed. The stock is down 5% this year, falling behind AI server competitors such as Dell Technologies. It also trails the benchmark S&P 500 Index. The demand for AI servers has exploded as startups and big tech companies race to launch generative AI services like ChatGPT, which require massive amounts of computing power. The high cost of advanced chips from companies like Nvidia or Advanced Micro Devices has weighed on the business. HPE announced that its strategy committee would also include independent directors Gary Reiner Raymond Lane and Charles Noski. Calderoni, as well as any Elliott employee directors, would also be nominated for election to the HPE 2026 annual shareholders meeting. Reporting by Jaspreet in Bengaluru, editing by Pooja desai
IAG to expand Lisbon hub and invest in Portugal TAP
British Airways' owner IAG announced on Wednesday that it would expand its main Lisbon hub and invest in the Portuguese flag carrier TAP if IAG were to win the race for a partial privatisation stake in TAP.
Portugal has relaunched its long-delayed TAP privatisation last week. It aims to sell a stake of 44.9% to an airline with global scale and competition, plus an additional 5% for TAP staff.
IAG, one of the three largest European airline groups, has met with the government in the last year to discuss privatisation. Lufthansa, and Air France-KLM are the other two.
IAG welcomes the... privatisation process. TAP will flourish under IAG's proven and distinctive model, which focuses on expanding strategic hubs and investing in airlines," said a spokesperson for the company.
TAP's main assets are its connections with Brazil, Portuguese-speaking African nations, and the United States, from its Lisbon hub. The government wants to maintain and expand this.
Some analysts criticize the potential IAG acquisition because the Lisbon hub is so close to IAG's Madrid base, which is owned by Spanish airline Iberia. IAG, on the other hand, could move routes from Lisbon to Madrid in the future, decreasing the importance of Portugal's hub.
The spokesperson stated that Dublin's Aer Lingus has doubled their long-haul flight capacity, despite being close to British Airways London hub. This is "a compelling example" of what TAP can achieve. Reporting by Sergio Goncalves. (Editing by Andrei Khalip, Mark Potter and Mark Potter.)
(source: Reuters)